Get ready to Pass the Series 56!!

 

This is a very good resource for Series 56 exam facts!  At http://www.examfacts.com they have an excellent study guide filled with basic exam facts for the Series 56 exam.  The book is also available at Amazon.com

 Sample Exam Facts:

What is a mediator?

Simply an impartial facilitator that attempts to get both sides to find an amicable settlement. The mediator has no decision-making authority and cannot force a resolution of the dispute. This is a voluntary process- no one can be compelled to go to mediation. Both sides must agree to mediation, and either side can exit the process at any time (at least until the point that they agree to a settlement and sign the papers!)

When can a sell order be marked "long"?

If the representative determines the location of the securities and that they can be delivered by settlement. The location of street name securities held by the broker-dealer is known, and because these are held at the firm they can be delivered by settlement. As long as the customer owns them, then it can be marked as long.

Floor brokers on the options exchanges, also known as board brokers, do what with trades?

Handle trades as agent only. They accept orders from the public for execution but do not trade for their own account. Market makers on the exchange floor make markets in option contracts and are buying and selling for their own account.

What does the SEC require with trade tickets?

A copy of each memoranda be made and retained for 3 years, with all the details of the order information. It makes no difference if the order is for a customer account or for the firm's proprietary trading account. This can be kept either as a paper or electronic record.

What is Making the close?

Trading at or near the close, to influence the closing price of the security, either up or down. This is a prohibited manipulative practice.